西北大学

Scaling Operations: Linking Strategy and Execution

56 评分

Over the past several decades, operations strategy has played an increasingly important role in business’ success. In this course, we will equip you with concepts and tools to build operations in a way that not only supports your competitive strategy, but also allows you to create new opportunities in the market place. Scaling operations: Linking strategy and execution is a five-week course dedicated to making strategic decisions that are grounded in operational reality. Together, we will study how to build and evaluate the “operating system” of the firm to maximize value. This involves tailoring the firm’s operational competencies, assets, and processes to a specific business strategy. Each week, we’ll explore case studies, engage in discussions and examine realistic data. Thanks to our data-driven approach, you’ll be able to implement your learning directly into practice. At the end of this course, you’ll be ready to build an effective, actionable plan to scale your department or organization.

从本节课中

Value Creation and Operations: The Investor View

We start by reviewing the main idea of using operations to create value (and the VCAP framework). We briefly discuss the key questions and introduce the main firm we are going to use (the Mafia restaurant chain). We discuss the key idea of measuring financial return (EVA and ROIC). Then we introduce the main tool, the ROIC tree. We apply the ROIC tree to the firm and discuss the steps: constructing the tree, identifying metrics, assessing impact (sensitivity analysis), building a growth plan and communicating the narrative.

2.1 Introduction and Motivation3:29

2.2 Quantifying Value5:51

2.3 Linking ROIC to Operations with a ROIC Tree10:09

2.4 Planning Scalable Growth in the ROIC Tree and Summary5:53

与讲师见面

Gad Allon
Professor of Managerial Economics and Decision Sciences
Jan A. Van Mieghem
Harold L. Stuart Professor of Managerial Economics; Professor of Operations Management

[MUSIC]

Welcome to session two.

In this session, we will focus on the value part of the VCAP framework for

operations strategy.

And we'll address two questions.

How does the operational business model create value, and

how does an operations leader communicate this?

Towards that end we will look at operations from the view of an investor or

shareholder.

We will focus on linking operations to value creation

expressing financial terms relevant to internal and external stakeholders.

Having established this link,

we can identify the operational parameters that have the greatest impact and value.

And finally, we can prepare and communicate a detailed plan that specifies

which parameters and associated capabilities can be improved

with corresponding milestones of value creation.

How does the current operational business model create value?

And, what improvements can be made?

These questions naturally arise when managing the interface between operations

and internal leadership as well as external parties, such as investors,

stakeholders, or capital markets.

One of the key challenges operations managers face

when dealing with both audiences is demonstrating and

communicating the value created by the operations.

>> Let's take an outside in view, if I am about to invest in or acquire this firm,

what exactly would I improve and how much value would this improvement create?

This usually translates to the so-called investment hypothesis,

which is a term we will use repeatedly in this session.

We can also take an inside out view.

If I am a manager, how do I communicate my operational improvements and

their value to internal leadership and

an external audience, such as shareholders and stakeholders?

As we will see, both views agree in the sense that every manager

must continuously engage in this type of analysis, even if there are no

specific investors to whom this information needs to be communicated.

As we highlighted in session one, the goal of operations is to create value.

Examining the operating system through this lens generates an unambiguous

metric of its success and a path to ensure future improvements.

In this session we will focus on establishing the link

between value and operations.

This approach will automatically identify and rank Key Performance Indicators, KPIs.

Armed with this link, we can identify an improvement plan that specifies

exactly how to improve which operational KPIs,

by how much, and link this to milestones and value creation.

The latter is useful for regular strategic planning, as well as for investors, or

even turnarounds.

When one of the main challenges is demonstrating to investors and

creditors that there is a path to turn the firm around.

[MUSIC]